HDV Delivers Higher Yield Than VIG in Dividend ETF Comparison

The iShares Core High Dividend ETF (HDV) has surpassed the Vanguard Dividend Appreciation ETF (VIG) in yield, reflecting distinct portfolio construction and sector exposure. As of early January 2026, HDV's trailing 12-month yield stood at 4.8%, while VIG reported a yield of 3.9%. This 0.9-percentage-point difference highlights HDV’s focus on high-yielding, established companies, particularly in sectors such as utilities, real estate, and financials. HDV’s strategy emphasizes dividend yield and income stability, targeting large-cap U.S. stocks with consistent payouts. In contrast, VIG prioritizes companies with a history of increasing dividends, favoring growth-oriented firms in technology, healthcare, and consumer discretionary sectors. This divergence explains the yield gap: HDV’s holdings include firms like ExxonMobil, AT&T, and Chevron, which maintain elevated payouts relative to their share prices. Investors seeking immediate income may find HDV more appealing, especially in environments where rising interest rates pressure bond yields. However, VIG’s focus on dividend growth could benefit long-term wealth accumulation, even if current yield is lower. The choice between the two often hinges on investor objectives—current income versus sustainable growth. Market dynamics suggest that higher-yielding dividend ETFs like HDV may see renewed demand amid macroeconomic uncertainty, particularly if equity markets experience volatility. Meanwhile, VIG’s appeal persists among investors prioritizing capital appreciation and corporate resilience over immediate return.